Top Reasons Why You Should Automate Accounts Payable
While technology has made Accounts Payable payment automation indispensable for a lot of companies, 60 percent of businesses in the US are not aware of the many benefits associated with A/P automation. Leveraging software programs to utilize the process in manner that is seamless and easy, listed here are our main 5 reasons to automate.
Accounts Payable automation allows A/P to correctly project its outstanding cash requirements, consequently getting rid of estimation. With better transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and things which will impact your department with value added actions.
Improve central controls
A manual A/P process is at risk of fraud. You add to the threats of human error, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and deter fraudulent activity.
The obsolete manual method is affected with lack of awareness, wherein can result in neglecting to realize a segment of risks. This could understate operating expenses thereby overstate revenue, which could lead to accounting and reporting abnormalities and ultimately fraud. A/P automation offers a complete audit trail of each part of the process, and permits management to swiftly fix potential difficulties.
Your suppliers prefer a more beneficial payment method. More efficient payments result in savings and savings for you. When you pay your clients by way of virtual credit card, which is a single issued credit card for a one-time use, you will earn monthly cash back incentives. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a income generator.
Avoid error, delay, and pointless costs with an automated A/P process. A/P errors may be very costly and take many resources to manually handle. With payment automation, you will see where, when and why errors accounts payable solutions took place. In contrast to the manual method, with automation you’ll have the ability to methodically get more info address and eliminate errors to boost quality.
A/P payment automation will save you cash, earn you additional profit, decrease the risks of fraudulent activity, get your operations greater transparency, satisfy your customers’ needs, and boost the overall quality of your A/P processes.